SH's Intraday Strategy - ELH5
- Thread starter Tradewithhunter
- Start date
mr.sumo,first u learn the concept of day trading, learn about margin requirments and the broker/subroker norms properly..even the xchange has fixed 5% margin requirment for trading intrady..i repeat its intraday..that means square off by 3.30 p.m..plus even for trading intraday as the all posiotions get squared off within theday itself no mtm payout is done..so the broker has full authority to allow clint trzaDe 12 times or even 20 times..as long as it is squared off eod..clients who trade in neat/bolt terminals can execute orders as their wish..no limit..no margin nothing..intrady margins r nothing but assurance for the broker..ya if u carforward without sufficient margins then broker has to bear the brunt although he can sell/buy it even without clients permission.. cheers
Wow! nice agressiveness.
I was referring to YOUR risk taking by taking 12 times margin and not the brokers. You seem to have misunderstood my post.
If you cant even afford full margin , how can you take such a high risk was my point. Not how your broker can afford to give you the margin and not about what time the trade should or should not be closed.
Question is about your rsk. If you loose even 2 trades, thats 45 points with bkg, you are down 9 % in one signle day due to agressive leverage. Thats all the point I was trying to make.
As for my knowledge of daytrading, all I can do is smile at your comment. All I can say is that I have been in this business long enough to see hundreds of traders like you wash out because excessive leverage and a few weeks of sideways markets took them to task.
Do calculate what your status would be with 4 loss making days in a row. Stockhunter, I would ask you to step in and advise people to be adequately capitalised before trading your strategy.
I was referring to YOUR risk taking by taking 12 times margin and not the brokers. You seem to have misunderstood my post.
If you cant even afford full margin , how can you take such a high risk was my point. Not how your broker can afford to give you the margin and not about what time the trade should or should not be closed.
Question is about your rsk. If you loose even 2 trades, thats 45 points with bkg, you are down 9 % in one signle day due to agressive leverage. Thats all the point I was trying to make.
As for my knowledge of daytrading, all I can do is smile at your comment. All I can say is that I have been in this business long enough to see hundreds of traders like you wash out because excessive leverage and a few weeks of sideways markets took them to task.
Do calculate what your status would be with 4 loss making days in a row. Stockhunter, I would ask you to step in and advise people to be adequately capitalised before trading your strategy.
Dear sir,
the point here is this is not an issue that's only bothering me, but its something that IIFL's charting system lacks. And even SH sir's 315 systems chart cant be pulled up in IIFL's charts. So last time I visited IIFL's office (not a franchisee) and tried to explain them in person what I wanted, but it took a little effort on my part to make them understand. So I request you if you read just the strategy explained by SH sir, you would understand what this system needs on charts.
Thank you for your initiative though.
Regards
the point here is this is not an issue that's only bothering me, but its something that IIFL's charting system lacks. And even SH sir's 315 systems chart cant be pulled up in IIFL's charts. So last time I visited IIFL's office (not a franchisee) and tried to explain them in person what I wanted, but it took a little effort on my part to make them understand. So I request you if you read just the strategy explained by SH sir, you would understand what this system needs on charts.
Thank you for your initiative though.
Regards
Guys,
Please do not make any conversation personal is my advice. Lets talk about markets and share knowledge in this thread.
As far as leverage is concerned, I agree traders need to keep sufficient margins to ensure they can stay in the game longer.
For this strategy, since our loss days can yield a maximum 40 point loss on any day ... you can be slightly over leveraged however I would still recommend atleast 30K capital per Nifty lot traded (or Rs 15K per mini nifty lot).
Even if we make net 200 point every month (which I think is not difficult to achieve)... we are talking about 30% returns on investment.
If you can do that for an year, your 30K will turn to approx 7 lakhs and if you can do it for 2 years, it will turn to 1.62 crores .. why over leverage and lose your capital in 3-4 loss days when you can trade underleveraged and still end up as a multi-millionaire in 2 years???
Remember the childhood story of the greedy man who slaughtered his hen which lay a golden egg daily to be rich immediately.....
Cheers
SH
Please do not make any conversation personal is my advice. Lets talk about markets and share knowledge in this thread.
As far as leverage is concerned, I agree traders need to keep sufficient margins to ensure they can stay in the game longer.
For this strategy, since our loss days can yield a maximum 40 point loss on any day ... you can be slightly over leveraged however I would still recommend atleast 30K capital per Nifty lot traded (or Rs 15K per mini nifty lot).
Even if we make net 200 point every month (which I think is not difficult to achieve)... we are talking about 30% returns on investment.
If you can do that for an year, your 30K will turn to approx 7 lakhs and if you can do it for 2 years, it will turn to 1.62 crores .. why over leverage and lose your capital in 3-4 loss days when you can trade underleveraged and still end up as a multi-millionaire in 2 years???
Remember the childhood story of the greedy man who slaughtered his hen which lay a golden egg daily to be rich immediately.....
Cheers
SH
Last edited:
Tradewithhunter:
For any trader who's been there for sometime, sideways markets are just as certain as death and taxes. 2 weeks of sideways markets will take a 12 times leveraged trader down by 30 to 50 % and I have serious doubts if the trader will be able to punch in any trades, and then, there goes the system down the drain because the trader is now picking and choosing his trades.
Just because your broker allows it, you are taking 12 times leverage.
So, if you have a car, and if the max speed is 180 knh per hour, would you drive at that speed through small bylanes?
If the car was not meant to be driven at that speed why did the manufacturer make it go that fast?
Is that the argument that you will give me when you speed at 180 kmh per hour on bylanes? Just because its possible, does not mean its to be done.
Accidents happen, friend, and traders who plan for accidents are those who survive and are able to participate long enough for the edge of the system to kick in.
For any trader who's been there for sometime, sideways markets are just as certain as death and taxes. 2 weeks of sideways markets will take a 12 times leveraged trader down by 30 to 50 % and I have serious doubts if the trader will be able to punch in any trades, and then, there goes the system down the drain because the trader is now picking and choosing his trades.
Just because your broker allows it, you are taking 12 times leverage.
So, if you have a car, and if the max speed is 180 knh per hour, would you drive at that speed through small bylanes?
If the car was not meant to be driven at that speed why did the manufacturer make it go that fast?
Is that the argument that you will give me when you speed at 180 kmh per hour on bylanes? Just because its possible, does not mean its to be done.
Accidents happen, friend, and traders who plan for accidents are those who survive and are able to participate long enough for the edge of the system to kick in.
Guys,
As far as leverage is concerned, I agree traders need to keep sufficient margins to ensure they can stay in the game longer.
For this strategy, since our loss days can yield a maximum 40 point loss on any day ... you can be slightly over leveraged however I would still recommend atleast 30K capital per Nifty lot traded (or Rs 15K per mini nifty lot).
Even if we make net 200 point every month (which I think is not difficult to achieve)... we are talking about 30% returns on investment.
If you can do that for an year, your 30K will turn to approx 7 lakhs and if you can do it for 2 years, it will turn to 1.62 crores .. why over leverage and lose your capital in 3-4 loss days when you can trade underleveraged and still end up as a multi-millionaire in 2 years???
Remember the childhood story of the greedy man who slaughtered his hen which lay a golden egg daily to be rich immediately.....
Cheers
SH
As far as leverage is concerned, I agree traders need to keep sufficient margins to ensure they can stay in the game longer.
For this strategy, since our loss days can yield a maximum 40 point loss on any day ... you can be slightly over leveraged however I would still recommend atleast 30K capital per Nifty lot traded (or Rs 15K per mini nifty lot).
Even if we make net 200 point every month (which I think is not difficult to achieve)... we are talking about 30% returns on investment.
If you can do that for an year, your 30K will turn to approx 7 lakhs and if you can do it for 2 years, it will turn to 1.62 crores .. why over leverage and lose your capital in 3-4 loss days when you can trade underleveraged and still end up as a multi-millionaire in 2 years???
Remember the childhood story of the greedy man who slaughtered his hen which lay a golden egg daily to be rich immediately.....
Cheers
SH
Very very well said.
SH, please request the members participating this thread to restrict their conversation regarding ELH5 only, that may help to convert this strategy into a system. Any conversation regarding margin/ broker may be stated in respective threads already running.
I would also request you to reply my ealier query (post no 602).
Thanks.
I would also request you to reply my ealier query (post no 602).
Thanks.
Similar threads
-
-
Help Needed : Modified SH's 315 Strategy with Supertrend
- Started by Profittaker
- Replies: 2
-
-
-
SH's trust with options - aim to make 50% or more returns per annum
- Started by Tradewithhunter
- Replies: 94